Against a backdrop of pastoralist traditions and deep-rooted dependency on dairy farming, Tanzania is witnessing a transformative chapter in its dairy industry. A pioneering project launched onMarch 18, 2022, by SAT Holistic Group LTD, supported by the Biovision Foundation Switzerland, has given a much needed thrust to the small-scale milk producers in the country.

In this transformative narrative, two dairycooperatives play a significant role - Namayana Dairy Cooperative Ltd and EretoDairy Cooperative Ltd, formed by the pastoralists from Lubungo, Kichangani, andMangae ward respectively. These cooperatives were established in 2020 andregistered in 2021 under the Farmers and Pastoralist Collaboration Project(FPC). Both Namayana and Ereto have seen a steady increase in membership sincetheir inception, bringing together diverse groups and contributingsignificantly to the local dairy industry.

A critical goal of these cooperatives is toensure a reliable market with competitive pricing for their milk. Thesecooperatives have streamlined the process of selling milk and have increasedthe quality of milk production. Their efforts have led to significant milkbusiness, with a record of 9,617 litres of milk sold to SAT Holistic Groupsince February 5, 2022, with a value of 7,693,600 TZS.

 In a country where milk is producedpredominantly by dispersed small-scale farmers, marketing functions for thedairy industry have historically lagged. A recent study focusing on the Mangaevillage in the Mvomero district revealed that 70% of milk producers sell theirmilk at their homes, which hampers their bargaining power. However, with theadvent of cooperatives, the dynamics have changed. Now, only 23.3% reporteddelivering milk directly to the buyers, and a mere 6.7% sold their milk to thehawker market.

The SAT milk processing facility has emergedas a beacon of hope in this setting. Capable of processing 200 litres of milkdaily, the plant has connected over 280 milk producers through localcooperatives. By offering a stable and consistent market for milk producers,SAT is redefining the dairy industry's marketing function. This is especiallyimportant for cooperatives like Namayana and Ereto, where it has provided anassured market and favourable price for their produce.

The SAT initiative gives pastoralists theopportunity to become shareholders in the company, providing a sense ofownership and empowerment. Their output, which currently includes milk andyoghurt with cheese soon to be added, is packaged in glass bottles to curbplastic pollution.

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Through the tireless efforts of dairycooperatives like Namayana and Ereto, the SAT Milk Processing Facility’s impacton the local economy and the livelihood of pastoralists has been profound,creating jobs and bolstering income through enhanced milk production. As Leaaptly puts it, "This is not just a factory; it's a beacon of hope for us.It's the dawn of a new era for pastoralists like us in Tanzania." Thefacility represents a robust model of sustainable development and an exemplarof empowering small-scale dairy producers through value addition andcooperative efforts.

With these cooperatives, pastoralists havefound a way to pool resources to meet their common economic, social, andcultural needs and aspirations through a jointly owned and democratically controlledenterprise. They have not just assured a stable market and profitable price fortheir produce, but they have also given birth to a new era of dairy productionin Tanzania.

The FPC Project is implemented by SAT and kindly supported by Biovision